Pet Supplies Plus
Bottom line
- Total investment $498K – $2.0M including a $50K franchise fee, 2.0% ongoing royalty.
- Average unit revenue of $2.6M/year (median $2.4M). Estimated payback in 7.5 years.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 383 loans (below the industry average).
- System growing at 29.7% CAGR over 3 years with 719 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Pet Supplies Plus unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pet Supplies Plus units return on equity?
Equity IRR · 5-yr
25.0%
3.05× MOIC
Year-1 DSCR
3.37×
EBITDA ÷ debt service
Equity required
$19.0M
on $34.2M purchase
Total debt
$15.3M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate full-service pet supply retail locations selling pet food, toys, grooming supplies, and accessories to retail consumers. Day-to-day operations include inventory management, staff hiring/training, customer service, marketing, and often coordinating grooming or boarding services if offered. Franchisees manage P&L for a typically 4,000-8,000 sq ft storefront in protected territories.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pet Supplies Plus presents moderate-to-cautious risk due to litigation ties, thin net margins, escalating royalties, and lack of financial performance disclosure—suitable only for experienced multi-unit operators with capital reserves.
Score breakdown · what drove the 44 / 100 rating
- 01HIGHLitigation involving affiliate (Buddy's) regarding franchise agreements and unfair competition raises questions about corporate governance and potential systemic franchise agreement issues
- 02MINORFTC settlement with Buddy's Newco regarding reciprocal purchase agreements suggests franchisor may have imposed unfavorable supplier relationships or tied purchasing arrangements
- 03MINORNet income of $164,676 on $2.6M average revenue (6.3% net margin) is thin—high operating costs relative to gross sales limit franchisee profitability cushion
- 04MINORRoyalty structure escalates from 2% to 3% after year one, reducing already-modest net margins in years 2-10 when many franchisees struggle past break-even
- 05MINORNo Item 19 financial performance representation limits ability to validate whether average revenue/income figures are actually achievable for new franchisees
- 06MINOR13.1% YoY unit growth is modest for a 719-unit system; suggests market saturation or competitive pressure in pet retail sector
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
87 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pet Supplies Plus · FDD (2024) PDF